GREENWICH, Conn.–(BUSINESS WIRE)–Interactive Brokers Group, Inc. (IEX: IBKR) today announced IBKR Lite, a new offering that will provide commission-free, unlimited trades on US exchange-listed stocks and Exchange Traded Funds.
IBKR Lite was designed to meet the needs of investors who are seeking a simple, cost-free way to trade US exchange-listed stocks and ETFs and do not wish to consider our efforts to obtain greater price improvement through our IB SmartRouting℠ system. The new offering will complement Interactive Brokers’ existing services, which will be rebranded as IBKR Pro. IBKR Lite will be available in October.
Key IBKR Lite features will include:
- Zero commissions on US exchange-listed stocks and ETFs
- No account minimums
- No inactivity fees
- Free market data for US exchange-traded stocks
- High interest rates paid on idle cash balances (1.5% under Fed Funds rate)**
- Low margin borrowing rates (2.5% over Fed Funds rate)
- Simple-to-use desktop Client Portal and IBKR Mobile trading platforms
- Trading non-US stocks, options, futures and fixed income at the lowest commissions
- Stock Yield Enhancement Program to earn money by lending fully-paid shares
“Interactive Brokers has always been known as the low-cost broker for sophisticated investors and institutions. We are able to provide superior pricing due to our focus on automation,” said Thomas Peterffy, Chairman and CEO of Interactive Brokers. “In order to attract a broader audience, we wanted to remove any impediments to opening an IBKR account. With the addition of no commissions or fees to trade US exchange-listed stocks and ETFs, no account minimums, and no cost to maintain an account for IBKR Lite, we believe Interactive Brokers will offer the best pricing options for both professional and retail investors.”
New and existing clients will be able to select between using IBKR Lite and IBKR Pro and switch between the two levels of service up to three times and then once per quarter. Like many other brokers, Interactive Brokers will route the orders of IBKR Lite clients to market makers in exchange for receiving payment for order flow. Clients that opt to use IBKR Pro will continue to receive the best prices our sophisticated algorithms can secure for them.
“Many brokers sell their clients’ order flow and still charge $4.95 or more to trade stocks and ETFs. With Interactive Brokers, clients can choose to pay no commissions and have their orders routed to market makers like many other retail brokers do or pay Interactive Brokers’ ultra-low commissions and receive professional executions through our IB SmartRouting℠ system,” Peterffy said.